Every trader/investor must guard himself against drawdowns, which refer to the percentage drop in his account size after one losing trade or consecutive losing trades.

For example, imagine that after losing a few trades in a row, your $20,000 account is reduced to $12,000; that would be a drawdown of 8,000/20,000 = 40%.

If I were to ask some new traders, "In order to be back up to $20,000, what percentage return do you need togenerate?"

Many would answer, "Since I lost 40%, I have to make back 40%!"

This couldn't be more wrong! Note that after losing 40%, the trader now starts with a lower base, i.e. to undo the $8,000 loss, the return he needs to generate is 8,000/12,000 = 66.6%!

The more severe the drawdown, the harder it becomes to undo the damage, as shown in the numbers below.

That is why all professional money managers only risk 1-2% per trade. It's because no matter how good your trading system is at some point it is a statistical fact you will have 10 losers in a row.

Based on risking only 1-2% per trade this is only a 10-20% drawdown and easily recovered. 99% of the hype trading and investing courses in existence don't say or do this. They say risk 5-10% per trade. It is wrong and will cause you serious financial pain if you follow their advice.

Many of them also use arbitrary stop loss advice. For example they say, "Place your stop at $100.10 because that is on the other side of a major support or resistance, trendline, MA, etc."

This makes your risk based on the size of the stop. That is also wrong because the risk can be too large and it's not the same risk on each trade.

Others reverse this and say risk only 2% total period and let that determine your stop. This is also wrong and will hurt you because it is important to have the correct technical stop.

The answer is to do both. Use a % and technical stop together. It works like this. Let's say the technical stop is $100.10, but based on your entry price that is a 3% risk. Since your plan calls for a 2% risk you simply lower the number of shares you are trading.

This lets you stay within your 2% risk and have the correct technical stop. This is exactly what most professional money mangers do. I know because I used to trade 50 million at a time and risk controls with correct technical stops is the number one priority.

Some say that this will lower their profits because of trading fewer shares. So what? Study the numbers above again. You know the old quote, "More risk equals more reward." Well it's not always true. Sometimes more risk equals more risk! If you lose your money you have no chance to make a profit. Even losing 50% is disastrous because you would then need to make 100% to get back to even.

Like Warren Buffet says, there are only two rules in investing.

Rule #1: Don't lose money.

Rule #2: Don't forget rule #1.

I'd like to add a third rule. Correct money management and position sizing must be mastered to insure your long term success.

The good news is that it is easy to have correct money management and position sizing. I just explained how to use a combo of a % stop and a technical stop. If you want more of an explanation please visit my free video area here and click on the "Why have risk controls" video:

{free videos}

Your system of entries, stops and profit taking is only half of your key to success. The other half is money management. If you get this part wrong you will lose your account every time regardless of how good your system is.

Please call or email my office anytime.

Here for you,

Big A

Most traders have had the painful experience of setting their risk stops only to have the price retrace to their stop and take them out before continuing in the trend. Although some traders swear that other traders are "running the stops," actually what happened is the trader placed the stop too tight. Note: At times some Hedge Funds do "run stops" and my monthly webinar teaches you how to avoid that most of the time.

You must remember that stops are there for one simple reason; to preserve your capital in case the market goes against you. If you are placing your stops too close, chances are you are consistently being stopped out and not consistently taking money out of the market.

For example, a tight stop would have taken you out multiple times within the three separate trends. However, with the ETF Trend Trading stops, Channel Exits and Swing Trailing Stop Strategies; most of the time you actually stay in the trend, enabling you to take your profits near the end of the trend.

By allowing your stops to breathe with the market, you stay in your trade longer, thereby profiting from the bigger moves. Because we combine technical stops with a percentage risk stop it does not matter if some of the stops are larger to give it more breathing room because it's still the same percentage risk.

I also teach a threshold level where the trade is not to be taken because the stop would be too far away. The great thing is that when the stop is tight we get to load up on the number of shares with still only risking the same amount.

For example if I was to sell the SPY at $100.10 and the technical stop in this case was tight at only $101.10 I would only be risking $1 per share. If I had a $20,000 account and wanted to risk only 2% that would be a total risk of $400. So I divided 400 by $1 RPS (risk per share) = 400 shares. So if price drops to a target of $95.10 I would make $5 per share times 400 = $2,000. That is a 10% rate of return while risking only 2%.

On the other end if my technical stop had to be $110.10 I would be risking $10 per share (almost the threshold of too high) and still be risking 2%. I would only be able to sell 40 shares ($400 divided by $10). So if I exited at the same target of $95.10 I would still make $5 per share, but only times it by 40 shares = $200. Still a 1% rate of return for the same risk of 2%.

That is why if the RPS (risk per share) is too high we don't take the trade. I share that threshold with my members. That is why many times on my free daily videos I say "we were able to load up on the shares in this trade because the RPS was so low!" Those are my favorite trades because they have the best risk vs. reward ratio. Note: If you don't like doing the math above don't worry because I have an excel sheet for member's that does all of it for you.

Yes we still get stopped out from time to time, but a lot fewer times than traders who are scared and place their stops way too tight.

The other end of the spectrum is what many average investors are doing right now with their mutual funds. That is to trade with no stops at all. Let me be blunt; this is the dumbest investment strategy around. Only financial advisors who only care about their management fee recommend this strategy. I call it the buy, hold and pray method. Stop and ask yourself this: "What has the buy, hold and pray method really done for me so far?" 

The sad thing is that many average investors have fallen for it. Yes the market might turn around, but you've got to admit it also might not! If your mutual funds are down 20-30% how much more can you take? The financial advisors are hiding the fact from you that you can learn to trade for yourself and do it better than them with proper training.

There is an easy way to become a superior trader or investor "working" only 10 minutes per night. I am a former fund manager and used to trade 50 million plus at a time. After leaving the money management business and trading only for myself, I got disgusted with the pathetic trading strategies are being pushed on the internet. 
Most of them have no idea how to place proper technical stops let alone how to combine it with a low risk percentage stop. Most of them have purely discretionary systems leaving you open to a gambit of contradictory trading decisions. To succeed long term you need to use technical stops combined with a max percentage loss stop. Using this tip alone will put you ahead of 99% of the "trading gurus" and it did not cost you a penny to learn. 

Most of them DO NOT trade in the live market like I do every night setting up my EXACT trade entries and sharing them with my advanced members the day before the market opens. Lastly most of them require a whole lot more than 10 minutes per night.

Cheaper does not cost less. Even if you never join my one year mentorship program, please don't waste your time and money on some cheap $99 or $499 course. You always get what you pay for. If it sounds too good to be true, guess what, it's not true.

Yes you will have losing trades in my system.

Yes we don't make as much in flat or sideways markets.

Yes you can't have dangerous 100 to 1 leverage trading ETFs.

Yes as your coach I will hammer you if you go outside the risk controls my system has in place.

Yes I have live webinars where I will hold your hand until you learn the system.

Yes you can day trade my system if you want.

Yes my system works on any time frame.

Yes my system works on ANYTHING that produces a chart.

Yes if you are a member you will receive unlimited email support for 6 full months.

Yes you will be learning from a real trader instead of an infomercial marketing genius or an incompetent salesman financial advisor. Why am I so harsh? It's because we are talking about your retirement and life. This is not to be taken lightly with a pat on the back and an "it will be ok" attitude.

Yes I have a no questions asked 90 day money back guarantee according to the simple terms on my homepage.

Yes my system can be learned by people with no trading experience.

Yes you can trade using the f.r.e.e charts at http://www.thinkorswim.com and have no other out of pocket expenses. Or you can use the paid http://www.tradestation.com charts like I do. The f.r.e.e charts have 99% of everything you need. Note: All my member's get two f.r.e.e months of charts with Trade Station. 

If that doesn't cover all your question please call or email my office today.

Please call or email my office anytime.

Helping you retire on time,

Big A

As a former money manager I associated with a lot of other money managers. Some of them were successful, some of them were not and none of them ever taught their systems. They all said I was crazy when I said I was going to teach my system. But knowing what I know about volume and liquidity on the daily charts I knew I would not be hurting myself. No trader worth their salt would ever share their system if it hurt their own fills and performance no matter how "nice" they seem.

With that said I want to share with you five characteristics of successful traders. All the successful money manager I know had these traits.

1. Successful traders don't "make things happen". If you try to force the market and enter too early because "you know it's going to go up" you will get hurt. The key is to be a follower, not a leader. Follow your system (if it's a proven system like mine) and don't make things happen outside of it. If you have a trigger finger and can't help clicking your mouse, then do it on a demo account. Just don't think when you get lucky a few times that it's ok to "make things happen'. That is the whole reason for using a system and milking the slight edge it gives you.
2. Successful trades are prepared. It's very important that you have a trading plan and that you stick to it. I will show you how to plan each trade quickly and easily each night in only 10 minutes after you learn my system.
3. Successful traders remain emotionally detached. Once you enter a trade, are you willing to forget about it until your pre-determined exit strategy is met? I admit that it's fun to watch your trading account soar in a matter of days, but watching it too closely can be dangerous. My after market trading plan eliminates 99% of emotion because all decisions are made while the market is closed and not moving. 
4. Successful traders expect to become rich. Can you picture yourself wealthy? Successful traders can. Don't limit yourself. Prosperity must be on the inside of you before it is on the outside. If not you will self sabotage your trading account when it starts to get too high because of a subconscious hang up that you don't deserve to be rich. I will teach you how to think and overcome any hidden physiological obstacles that are hindering you from success. That is part of my mentoring program.
5. Successful traders all had a mentor. Warren Buffett looked up to and learned from Ben Graham. Jim Rogers learned from George Soros. My personal mentor is still in the business (and no he doesn't teach his system). Sure Warren Buffet modified his system from Ben Graham to make it his own. All good traders "make it their own" after learning all the system trade rules. 

I remember the one time I felt an earthquake. I was is Sacramento and one struck in San Francisco and everything in the house shook. For a split second I really thought the house was going to come down on me. I’m not exaggerating, it scared me that bad. Now image feeling that, but then walking out of your house and only seeing ruble and bodies all the way to the ocean.

I’m at a loss for words, I figure most of you are too so I’m not going to say much in this email. I just wanted to let you know that I’m looking for good charities that will help the Japanese victims directly. So if you know of any good ones, let me know. As you can see from this link, I do like helping charities and I will end up giving thousands of dollars to the few charities you pick.

http://www.etftrendtrading.com/charity.html

When Haiti got hammered I promoted a charity and had a lot of feedback (positive and negative), so this time I figured I’d ask you since I personally don’t know what to do. All I know is that I want to do something, so let me know asap.

Helping you retire on time,

Big A

P.S – I suppose I could write about trading opportunities like my “competition” does, but I won’t for two reasons. First everyone knows that the Japanese stock market is crashing, and sharing that to look smart (no matter how many fancy words they use, or symbols they give) is stupid to me. Sure if you want to sell that market in an ETF you can, just remember, no one knows the future and volatility will be high. Secondly because I’m an individual, not a faceless corporation trying to turn a tragedy into a promotion. 99% of big dumb corporations don’t have a heart, but I do. In fact I challenge my “competition” (most of them are on my email list) to each raise or give at least $5,000 for Japanese charity. Maybe this challenge will egg them on to actually do something productive and help people.

As far as I can tell, Doug Kass at TheStreet.com invented it back in Oct of 2010.

He defined this way:

“Screwflation, like its first cousin stagflation, is an expression of a period of slow and uneven economic growth, but, its potential inflationary consequences have an outsized impact on a specific group. The emergence of screwflation hurts just the group that you want to protect – namely, the middle class, a segment of the population that has already spent a decade experiencing an erosion in disposable income and a painful period (at least over the past several years) of lower stock and home prices.

Importantly, quantitative easing is designed to lower real interest rates and, at the same time, raise inflation. A lower interest rate policy hurts the savings classes — both the middle class and the elderly. And inflation in the costs of food, energy and everything else consumed (without a concomitant increase in salaries) will screw the average American who doesn’t benefit from QE 2.”

If you’re a middle-class saver/investor, I’m sure you can identify with this. And, if you want company, there are lots of pundits out there who are willing to tell you just how screwed you are. That’s not what I’m going to do today. I want to talk to you about how to get unscrewed.

Once you figure out how the system works and that you’re not part of the elite that it’s designed to serve, you’ll either sink into depression and say WTH or get smart and figure out a way to work it. One of the best ways to beat the system is to figure out how to make a lot more income – so much that you enjoy paying lots more taxes on it!

You know your employer isn’t going to see it quite that way so take a look at your skills and find a place to use them in your own side business. Many investors like rental real estate and with the current environment of low interest fixed rate mortgages and reduced prices; if you find a good property you can expect a dependable monthly cash flow. Some folks are finding ways to sell goods and services online and you might want to look into internet based businesses you can run part-time. But, my favorite is (no surprise) learning to trade the financial markets.

It’s not for everyone but don’t think that because you don’t have an MBA or accounting experience that you can’t learn to read the charts and trade profitably. The markets don’t discriminate but they do favor people who learn and apply a couple basic skills. Primarily, those who can rein their emotions in and trade a proven system.

So, it’s up to you.

While most of the ordinary people who make up the backbone of this country get Screwflation:

• Investment portfolios with zero gains (at best) after the bubbles and busts of the last decade
• Values of their hard assets (like their homes) trashed
• High household debt levels
• Plus the well paid jobs being eliminated while skilled workers settle for part-time work and low-paying service jobs with few benefits

Screwflation is killing the retirement savings of millions of Americans as it slashes their spending power and standards of living. As long as Washington isn’t producing solutions, it’s up to enterprising Americans to look for alternatives.

Politicians say America may remain in a high-unemployment, low growth mode for another four or five years. We haven’t seen that kind of outlook since the Great Depression. But, unlike the Depression, there are impressive areas of growth and wealth in our economic system.

Investors who aren’t content with average gains should consider how to work the system. And, when you’re ready, I’m here to help you say screw’em and claim your rightful share.

If you’ve been reading my emails and articles for long you know I place a high value on family. I really enjoy the freedom trading for my own accounts and mentoring other traders gives me to spend more time with my family.

I’d go so far as to say that if you can only have one – a healthy loving family or money, chose the family (though I know you can have both)!

So, with the Super Bowl coming up this weekend and Valentine’s Day just 8 days later, my advice is to get the florist on the phone or online and order that flower arrangement now! That way you can relax and enjoy the game knowing you’re covered with the significant other.

I like to have the flowers delivered the day before but since the 13^this a Sunday this year I’ve got a dilemma. If your GF/BF/Spouse works a Mon. – Fri. job, you’ll score more points by having the flowers delivered to their office on Friday (and you’ll guarantee a nice weekend for yourself too). If they’re at home, looks like opting for the Saturday delivery is the way to go this year. If you wait for Monday, it could be pretty late in the day and you lose out on the good vibes over the weekend!

Now you can turn your attention to the big game. Whether you’re a Packer or a Steeler fan, we’re all hoping for a game that’s at least as good as the commercials! Living in Texas, I’m disappointed our teams didn’t get close to playing any play-off games (let alone the Super Bowl) in the Cowboy’s Billion Dollar stadium but I’m sure all the northerners will enjoy their stay in Dallas.

I even enjoy a little friendly wagering on the big game – it adds a little spice as long as you’re playing with money you can afford to lose. And, if you’ve been to a Vegas sports gaming parlor, it’s amazing all the ways you can lose money on the game! It’s not just win/lose or the over/unders. Every quarter, every type of stat is an opportunity to play (and pay). The office pool may end up being more fun since whoever wins usually blows the money buying pizza for the group!

But, however you spend Super Bowl and Valentine’s Day, I encourage you to celebrate the good times with family and friends – make plans early on so you can relax and enjoy the celebrations because it’s not just about the money, it’s about the lifestyle to.

Have a great weekend.

Helping you retire on time,

Big A

Many people, including experienced investors, realize that there is money to be made by trading currencies but have no idea where to start in the forex market.  There is, however, an alternative in currency ETFs.

These ETFs track an individual foreign currency or basket of currencies by utilizing futures contracts or foreign cash deposits. The ETFs that utilize futures invest excess cash in high quality bonds, usually United States Treasury bonds.

Currency ETFs are a simple, unleveraged option to trading different nations currencies without trading on the FOREX market.

FOREX Vs. Currency ETFs

The foreign exchange market, or FOREX, is the world's largest most liquid market in the world.  The FOREX offers round-the-clock trading 5 1/2 days a week. In order to trade FOREX currency pairs and other currencies, you must obtain a foreign exchange broker.

Currency ETFs are traded through your brokerage and are bought and sold on the New York Stock Exchange.  Because of this they are not traded 24 hours a day, and have significantly lower volume and liquidity. 

Investors who are looking for investments that hedge their exposure to the US dollar could find ETFs attractive.  The ETFs are also potentially helpful for non-investment intents, like hedging a dealing in a foreign currency.

The Currency ETF Commodities Link

Trading in currency ETFs can also offer you indirect exposure to the commodity market, as the health of many nations is linked to the commodity reserves they keep.  Experts state that the FOREX is directly correlated with other investment assets at certain times. 

In the case of gold, the South African region produces a large amount of the world's gold supply and is ranked in the top five among gold-producers.  This causes a positive correlation between the price of gold and the South African rand.  Conversely, gold and the US dollar have a more negative relationship.

The Mexican peso is essential when dealing with Mexican silver mines, as Mexico is one of the world's top manufacturers of silver.  Under these circumstances, the cost of Mexico's peso and silver enjoy a positive relationship.

Chile enjoys an edge in the copper market as it produces approximately one third of the world's copper-a necessary material for manufacturing retail and commercial products.  Countries with the greatest need for copper will probably need to deal in Chilean pesos.  This causes a strong positive connection between copper prices and Chile's currency.

You can take a broad strategy to increase exposure to commodity currencies through a currency ETF that possesses all of  the currencies of major commodity producing nations in a single ETF. You can own currencies in South Africa, Noway, Brazil, Canada and others.

Increase Exposure To Emerging Markets

An appealing way to take advantage on the development gap between the world's nonindustrial and advanced economies is to step-up exposure to emerging markets currencies.

If the thought of currency trading makes you think of severely leveraged, high-risk FOREX trading, the reality is that currencies are a comparatively reduced volatility class.

Currency trading carried out through currency ETFs does not have to be a no gain scenario. Some currency ETFs garner returns associated with both money market returns available to foreign investors, as well as exchange rate movements.

Please call or email my office with any questions.

Helping you retire on time,

Big A

There was a time when investing directly in oil commodities was limited to oil companies and financial institutions.  The growth of exchange traded funds in the United States had evened the playing field in a lot of ways, and that includes investments made in assorted crude oil products that are available to the ordinary investor.

Utilizing a multitude of strategies, investors can gain exposure to the price of assorted forms of oil.  If you are betting on near term changes in oil costs or a hedge against rising costs, oil ETFs are an efficient, inexpensive, and simple option to gain exposure to oil prices.

There is a lot of data to go over if you are an interested investor, so it is important to consider some major issues when researching oil ETFs.

Behind The Scenes Of An Oil ETF

Oil ETFs operate much like other ETFs in that they follow an underlying index.  An oil ETF operates in a slightly different manner from a traditional ETF in that there are obstacles to physically purchasing and holding gas and oil commodities. 

Aside from the fact that physically buying and holding these products would be outrageously expensive, in many cases it would be logistically unfeasible. 

Oil ETFs usually invest in short-term futures contracts on the underlying commodity in order to garner exposure to oil prices.  In certain environments this tactic may track spot prices relatively closely, while it may be way off in other cases.

If oil futures are valued higher than the spot price – referred to as being in contango – funds utilizing this course of action will be constantly moving ahead into more costly contracts.

Different oil ETFs are set up as ETNs (exchange traded notes) which means that they possess either the futures contracts or the physical goods.  These ETNs are senior unsecured debt instruments, supplied by a banking institution that consents to remunerate investors the proceeds on a connected underlying index.

This ETN structure presents investors with counterparty risk, but reduces tracking errors.

Factors Affecting Oil ETF Prices

Foretelling the factors likely to affect the cost of an oil ETF is a difficult task.  Market news and speculators can influence short-term costs and cause significant volatility.

Factors that affect oil prices over the long term are more clear-cut.  These factors include production levels, alternative energy production, political factors, natural disasters, and new discoveries.

OPEC manufacturing levels can dictate prices if concerns about anemic demand arises.  In this case OPEC can choose to halt production.  In the event that oil producing countries are looking to raise revenues an alteration in supply can lead to depressed  prices.

In the coming years, the need for natural gas and crude oil could depend on the evolution of alternative energy.  The use of crude oil could dwindle if wind and solar energy become viable energy options.  Prices could continue to be held-up by a dependency on oil if these commercial enterprises continue to face sustainability obstacles.

As much of the world's oil reserves are located in the Persian Gulf, geopolitical tensions could dictate the cost of crude oil due to the regions historic instability.  The dealings of companies in the energy sector could be hindered in the even of a delay in oil production.

Natural disasters, in particular hurricanes, are unpredictable in nature, and can wreck havoc on oil production and ultimately effect prices.  Severe storms can drastically decrease output, cause long costly delays, and focus attention on alternative energy sources.

Recent years have also seen the discovery of oil and natural gas in new places.  Prices could fall  in response to heightened global supply depending on the amount discovered in these new regions.

Secondary ETF Investment Alternatives

In certain climates, oil and natural gas prices can be extremely volatile, and are not appropriate for certain investors.

For investors looking to gain from rising oil prices but without investing in commodities, there are various energy exchange traded funds that hold companies that engage in the distribution and production of oil. 

A comprehensive energy fund may have a substantial allotment to oil and gas companies in addition to suppliers of drilling equipment and various other services within the energy sector.

Please call or email my office with any questions.

Helping you retire on time,

Big A

I keep going back to this topic because it pretty much determines if you make it as a trader or not. There are lots of trading systems that work but unless you learn to manage your emotions and trade the system you’ll never last.

So, why is it so hard to buy low and sell high (or as I like to say “buy high” and “cash out even higher”), to cut your losers and let your winners run?

Researchers in Behavioral Econ and Neuro-Econ have been studying this question and have some interesting findings.

They’ve concluded that humans are initially programmed to sabotage themselves financially. Not just in trading but in everyday transactions in the modern economic system.

Things like buying now and paying (much) later or buying to satisfy an emotional need rather than a real need for a product.

I continue to be amazed that people make major decisions on a whim. Recently I was reading some of the hardship stories of folks who’ve been unemployed for a longtime. One guy admitted buying a car, on impulse, just before he got laid off!

He said he didn’t really need a new car and knew he should be building up his savings but he went shopping one day and came home with a new $30,000 car.

The worst part is that he suspected that he might be laid off. This kind of thing just blows my mind every time I hear about it.

So, I propose you try living with these two rules:

Rule #1: Don’t make buying decisions when you’re excited.

Rule #2: Don’t make selling decisions when you’re afraid.

Here’s why: When you make a money decision when you’re “under the influence” you will self-sabotage most of the time.

Emotional decisions tend to be poor financial decisions and expensive mistakes.

Prove it yourself. Test yourself.

Think of a time when you bought something “on impulse” – when you were very excited – and you wound up regretting it later.

Think of a time when you sold something when you were fearful, and it wound up costing you big in the long-run.

Think of a time when you made a financial decision without getting advice and input from a mentor or trusted friend who had more experience and expertise in the area than you did – and you wound up making an expensive mistake.

After you’ve come up with a couple examples of your own, decide what you’d do differently if you were following our two rules and remember this next time you have an impulse to buy a new car, or when selling a home or boat.

The ETF Trend Trading system I developed automatically takes excitement and fear out of the mix by only making trading decisions when the market is closed. Plus it’s a 100% mechanical system so there is never a “feel like this trade” decision to make.

As you progress as a trader, you may be able to trade during the market hours, but executing the system trades without letting fear and greed (or excitement) cloud your judgment is an ongoing battle. We must remind ourselves of the rules and monitor our behavior to guard against sabotaging our trading.

The rewards are great, if we can delay gratification and stick to the plan. Thanks for allowing me to be your guide.

Helping you retire on time,

Big A

For those of you outside the US, you’ll have to indulge me as I recall some lessons learned from this iconic American entertainer of the 1940s, 50s and 60s. In my childhood home we had three choices for entertainment: NBC, CBS and ABC.

Nationally broadcast television shows made history come alive and taught us important life lessons while helping us form a national identity. We watched these shows with our family and replayed them with our friends in our schoolyards and neighborhoods.

Roy Rogers was a favorite of the kids and their parents. He is remembered as a likable, smiling, church-going, America-loving family guy who was always grateful to the fans that made him a superstar.

He supported many charities and was especially kind to children including the five he adopted.

He fed our fascination with the American wild-west of the 19^th century and its freedom seeking adventurers along with the spread of American culture from the Atlantic to the Pacific and the romance of Hollywood.

California was part of the American West and many actors took on the cowboy persona in movies and TV shows. There’s even an Elton John song about it –

“Oh the great sequin cowboy who sings of the plains
Of roundups and rustlers and home on the range
Turn on the T.V., shut out the lights
Roy Rogers is riding tonight”

Roy sung songs about the romanticized cowboy lifestyle while riding a dancing horse, Trigger (his best friend and co-star he dubbed “The Smartest Horse in the World”).

Later a human co-star (and wife), Dale Evans, joined them. They performed riding and roping stunts at live rodeos and boy do I remember how excited we were when he came to our local arena.

So what does all this have to do with trading? Well, thinking back on it, it seems like the idea of an independent guy making his own way in the new territory kind of got under my skin.

Cowboys were strong and brave and fought for what they believed in. They defended their women and took care of their animals and children without complaining. Values I’ve incorporated into a modern lifestyle.

The financial markets are a bit like the wild-west. There’s a few outlaws who pillage and rob, a sheriff who tries to keep order, and the settlers.

If you’re smart and brave and properly equipped you can maneuver through the territory, mining your share from the abundant resources, as a maverick, living the lifestyle of your dreams.

Roy Rogers had business vision too. He owned his own production facilities (the Double R Ranch) and developed raw land into suburban neighborhoods east of Los Angeles. Roy was a pioneer celebrity when it came to mining the riches of product licensing (including a now defunct fast food chain and personal history museum). His estate once topped $100 million.

There were Post cereal boxes with Roy’s grinning face, comic books, hats, shirts, bandannas, cap guns, holsters, knives, gloves, lassos, furniture, sheets, blankets, clocks, dolls, lunch boxes, guitars, rings, badges, and musical hobby horses. We always asked Santa for the latest Roy Rogers endorsed products at Christmas.

When asked about his investments he’s quoted as saying,

… “I’m not worried about the return on my money so much as the return of my money.”

Sounds like he was a Risk-Reward kind of guy like I am!

He also never got cocky or over confident with his success. If he would have traded stocks my guess is that he would have ended up being one of the best.

Anyways, I hope you enjoyed this little tale — “Happy trails to you, ’till we meet again.”

Helping you retire on time,

Big A